Cash injection fails to lift markets

Update: February, 28/2014 - 08:25
Traders watch developments at Vietcombank Securities. Shares tumbled on both bourses yesterday. — VNS Truong Vi

HA NOI (VNS) — Shares tumbled on both bourses yesterday, but the significant capital inflow proved the staying power of the stock market.

The trading value on both national stock exchanges totalled VND4.4 trillion (US$209.5 million) yesterday, just slightly lower than the record of VND5.5 trillion ($261.9 million) last Thursday.

According to the forecast of many analysts, the stock market is becoming an attractive investment channel, given that market liquidity had strongly improved since Tet (Lunar New Year) holiday.

Shares were seen opening higher, with gains from large caps pushing the VN-Index on HCM City Exchange to reach 596 points in the morning trading session.

However, the trend was reversed during afternoon trading when selling pressure suddenly intensified, dragging down the benchmark index.

The VN-Index closed yesterday 0.85 per cent lower at 584.79 points.

Profit-taking occurred for blue chips on the VN30-Index, which tracks the southern city's 30 largest shares by capitalisation and liquidity, losing 0.77 per cent to end at 662.74 points.

Of these, two thirds closed in the red, overwhelming the eight gainers.

After four consecutive days of posting gains, Hoa Sen Group (HSG) decreased 5.2 per cent per share to VND54,500 ($2.7).

Decliners also included big names such as Masan Group (MSN), PetroVietnam Drilling (PVD), Kinh Do (KDC), and FPT Group (FPT) Southern Rubber Corporation (CSM), Da Nang Rubber Corporation (DRC) and Hoa Phat Group (HPG) also saw a decline.

The capital inflow yesterday shifted from blue chips to penny and midcaps yesterday, helping these stocks post gains.

On the southern bourse, 92 codes managed to increase, while 145 codes lost value. With more than 225.2 million shares changing hands, the total trading value reached about VND3.5 trillion ($166 million).

Banking stocks maintained their activeness from Wednesday with Vietinbank (CTG), Eximbank (EIB), Military Bank (MBB), and Vietcombank (VCB) posting gains.

A record 25.48 million shares of Tan Tao Group (ITA) changed hands yesterday, with the stock edging up VND300 ($0.014) per share to VND8,000 ($0.38).

On Ha Noi Exchange, the HNX-Index also reversed its upward trend in the afternoon trading session, with a drop of 2 per cent to end at 82.63 points.

However, the HNXFF-Index, tracking stocks with a minimum free-float rate of 5 per cent, advanced 0.26 per cent to reach 82.13 points.

On the capital city's bourse, more than 110 million shares were exchanged for a total value of VND1.06 trillion ($50.4 million).

The HNX30-Index finished yesterday at 164.84 points, a decline of 0.85 per cent.

According to FPT Securities, the market will witness some trading sessions with losses in the short term, which will help the benchmark indices consolidate and gain higher points in the long term.

Some securities firms recently forecast that the VN-Index would hit 700 points this year, following an increase of 22 per cent last year.

Foreign investors continued to inject money into the market yesterday, with net volume and value of more than 2 million shares and VND76.5 billion ($3.64 million), or 44.77 per cent and 76.73 per cent rises over Wednesday, respectively. — VNS